Pandora Media asked KKR to postpone the closing of its $150 million investment to explore another offer from Sirius XM. Fred Katayama reports.
Music streaming company Pandora is buying itself some time. It asked private equity firm KKR to postpone the closing of its $150 million investment in Pandora to explore another offer from satellite radio company Sirius XM. Reuters reported on Wednesday that Sirius XM is negotiating a private investment in public equity - or PIPE - after talks about buying Pandora in its entirety folded over price disagreements. Pandora stock closed at its lowest in over a year on Wednesday, and fell even further on Thursday. Bruderman Asset Management chief market strategist Oliver Pursche says combining Pandora and Sirius provides income diversification. (SOUNDBITE) OLIVER PURSCHE, CHIEF MARKET STRATEGIST, BRUDERMAN ASSET MANAGEMENT (ENGLISH) SAYING: "Sirius obviously being very much subscription-based and having it based on people buying the Sirus XM radios and their services, whereas Pandora, especially on the free side, is ad-driven. So getting that ad revenue and their different revenue stream gives them diversification. I don't think that either of them are going to thrive individually, but together they could do well." Pandora competes with services such as Spotify, Apple Music, and Google Play Music, which dominate the on-demand music service market..